Saylor’s Perspective Shifts on ETH Approval by SEC, Sees Positive Impact on Bitcoin
NAIROBI (CoinChapter.com) – Michael Saylor, the founder of MicroStrategy, has recently changed his perspective on the approval of spot Ether ETFs by the U.S. Securities and Exchange Commission (SEC) and now believes it will benefit Bitcoin. During a podcast called “What Bitcoin Did” on May 25, Saylor discussed with Peter McCormack the implications of this regulatory move. He now sees the approval as a means to strengthen Bitcoin’s political and industry support.
Saylor’s change of heart regarding Ether ETFs marks a significant shift from his previous stance. He believes that the SEC’s approval of eight spot Ether ETFs on May 23 will accelerate institutional adoption. “Is this good for Bitcoin? Yeah, I think it’s good for Bitcoin,” Saylor stated. He emphasized that this development enhances Bitcoin’s position by aligning the crypto industry politically.
Saylor argues that the approval of Ether ETFs could bolster Bitcoin’s position by providing additional political support from the broader crypto community. Moreover, he suggests that this development could expedite institutional adoption of cryptocurrencies, as investors who were previously hesitant may now perceive the asset class as legitimate. Saylor predicts that mainstream investors will allocate a portion of their portfolios to cryptocurrencies, with Bitcoin capturing the majority, possibly 60% to 70%, of the crypto allocation.
In the past, Saylor had expressed doubts about the likelihood of SEC approval for Ether and other cryptocurrencies such as BNB, Solana, XRP, and Cardano. This shift in Saylor’s viewpoint has sparked discussions within the crypto community. Joe Carlasare, a Bitcoin commercial litigator, noted Saylor’s change of heart as a significant shift. Meanwhile, crypto analyst Ricky Bobbyy raised the question of whether Saylor’s endorsement might lead to his personal investment in Ethereum.
As of May 26, Bitcoin is trading at $68,610.17, experiencing a 1.10% decrease in the last 24 hours. The 50-day exponential moving average (EMA) at $65,158.96 serves as a critical support level. If breached, it could lead to further downside towards the 200-day EMA at $54,877.25. On the other hand, Bitcoin needs to overcome the resistance levels at $71,984.07 and $72,986.57 to regain bullish momentum.
The relative strength index (RSI) at 57.14 indicates moderate momentum, suggesting that Bitcoin is neither overbought nor oversold. This level implies the potential for consolidation or a continuation of the current trend, depending on market conditions.
The approval of Ether ETFs is seen as a positive step for the entire crypto industry. Saylor highlights that it serves as an additional defense line for Bitcoin. He expects hesitant investors to now view cryptocurrencies as a legitimate asset class, leading to broader adoption.